The EV race is far from over for legacy automakers, and Ford and GM are betting on different paths for what comes next. The article uses their latest third-quarter earnings to show which one is moving ahead.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
FordGeneral Motorselectric vehiclesearnings
Open a keyword to see other news on the same topic.
Related news
- Can General Motors and Ford Survive the Flood of Cheap Chinese EVs?
China is flooding the world with cars, hurting rivals everywhere. The article argues GM and Lear could still thrive despite this.
- How lower fuel economy targets could boost pickups and V-8 engines
The U.S. lowered its fuel economy target to an average of 34.9 miles per gallon by 2031, down from 50.4 under the prior rules, and Congress voted to eliminate automaker fines for non-compliance. TD Cowen analyst Itay Michaeli said this could give automakers a tailwind of a few to several hundred million dollars, and the end of credit trading lets them shift from compliance vehicles toward more profitable gasoline models such as pickups and V-8 engines from Ram, GM and Ford. Automakers have already taken large EV-related charges, including Ford's $19.5 billion special charge and GM's $7.1 billion impact tied to China. Analyst John Murphy expects hybrids to rise from 14% of the market last year to about 34% by the end of the decade, absent a change in the regulatory regime. The article is cut off before its full view on EVs.
- Ford's Next Growth Engine Could Already Be in Your Driveway
Ford reported more than 1.7 million active paid software subscriptions through September, up more than 40% year over year, along with record quarterly software-services revenue led by BlueCruise and connectivity, though it did not disclose specific revenue figures. Its U.S. Q3 vehicle sales fell 6.6%, underscoring the value of services after the initial sale. GM reported more than $800 million in OnStar revenue in Q3, up 15%, with Super Cruise revenue growing roughly 60% and a full-year target of roughly $400 million. GM also held $6.8 billion in deferred OnStar revenue, up roughly 40%. The article notes Ford's subscription count is not directly comparable with GM's OnStar base, and that neither company has disclosed a standalone software margin, so these services must eventually show up in profits.
- 2 Revolutionary Developments That Should Change Your Investing Thesis on Ford and General Motors
The article compares Ford and General Motors through two developments that could shape their future. On the positive side, GM earns roughly 70% gross margins on its OnStar and Super Cruise digital services, with 12 million to 13 million OnStar subscribers and $800 million in revenue in the second quarter alone. Ford reports about 1.6 million paid subscribers, BlueCruise subscriptions growing about 40% a year, and a strong Ford Pro commercial business. On the negative side, Chinese automakers are expanding rapidly with low prices, gaining share in Europe and on pace to export 11 million vehicles this year. Ford CEO Jim Farley said Europe now has to deal with the issue, and that it is too late.
- Ford's EV Losses Narrowed. Is the Turnaround Fool's Gold?
Ford's Model e unit narrowed its third-quarter EBIT loss from $1.41 billion to $1.058 billion, but revenue fell 31% to about $1.2 billion, and the EBIT margin worsened from negative 79.1% to negative 86.5%. Ford credited cost cuts and aligning its first-generation EV business with demand. The article says the bigger test is Fathom, a midsize electric pickup on the Universal EV platform, planned for launch in the fourth quarter of 2027 with a starting MSRP of $28,350 for the standard-range version, excluding taxes and fees. Management expects higher expenses in 2027, with the next significant profitability improvement likely in the first half of 2028 and Model e breakeven targeted for 2029. The article lists launch readiness, production costs, customer demand and the margin trend as factors to watch.
- Tesla vs. Ford: Which Stock Has an Edge After Q3 Earnings?
The article compares Tesla (TSLA) and Ford (F) after both beat third-quarter 2026 EPS estimates, though investor reactions differed. Tesla cut its 2026 capex plan from $25 billion to $20 billion, delivered 486,532 vehicles in the quarter and lifted automotive gross margin to 18.5% from 17%, while operating profit declined as R&D costs rose. Ford tightened its 2026 adjusted EBIT guidance to $10.5 billion-$11 billion from $10 billion-$11 billion, but third-quarter EBIT fell 16% to $1.7 billion, Model e posted a $1.1 billion loss and commodity headwinds are expected to approach $2.5 billion in 2026. Over the past month Tesla shares gained 14% while Ford lost 1%. The article's view is that TSLA currently has the upper hand, as Tesla's profit pressure stems from investment in growth while Ford's stems from factors outside its control such as commodities and tariffs.
Related markets
Latest news
- Democrats map out an agenda to address affordability and corruption after midterm sweep
Newly elected Democratic majorities in the Senate and House plan to pass a flurry of bills soon after taking office in January, focusing on affordability, including high costs for gas and groceries, CNBC reports. In their first 100 hours, House Democrats plan to restore expired enhanced health insurance subsidies and reverse Medicaid cuts Trump signed last year, while the party also plans to push a bill undoing his sweeping tariffs and to vote again on ending the Iran war. Democrats are also mapping oversight investigations of Trump, his family, cabinet and business supporters, though Minority Leader Hakeem Jeffries said targets have not yet been evaluated. Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, pledged to make billionaires pay their fair share of taxes and to scrutinize insurers and pharmaceutical CEOs. Some Democrats are also pushing an ethics package that could ban stock trading by officials and limit super PAC spending.
- These stocks have soared the most today after the Democrats trounced Trump
Stanley Black & Decker was the strongest performer in the S&P 500 today. Several tech companies and associated power providers posted sharp declines.
- Is Broadcom Stock a Buy Now?
Broadcom shares are down 31% from their all-time high and 4% since the start of 2026, hit by a semiconductor sell-off after Intel's disappointing fourth-quarter guidance. Yet the author notes fiscal third-quarter AI semiconductor revenue of $16.7 billion beat the $16 billion target, up 221% year over year, and total revenue reached $29.6 billion, up 86%. Management guided to $21.7 billion in AI semiconductor revenue for the fourth quarter, up 236%. Risks remain, including competition from Google's expanded Marvell partnership, and the stock trades at 28.3 times forward earnings. The author still considers the valuation justified by the results and finds the shares attractive below their peak.
- Canton Coin Gets SEC Nod as Wall Street Tokenization Heats Up
The SEC's Division of Corporation Finance said it views Canton Coin as a “digital commodity” and won't recommend enforcement action if validators and application providers mint the token programmatically without registering it. The staff relied on Canton's representations that the token's value comes from network operation and supply and demand, and that the network has no “central party.” Canton launched without an initial coin offering or premine, with tokens earned only by running network infrastructure and applications. The relief arrived a week after DTCC launched a tokenization service on Canton that lets firms convert DTC-held stocks and Treasuries into tokens, and Morgan Stanley said it was among the first banks to use it. The SEC noted the letter reflects only staff's enforcement position, not a legal conclusion, and rests on the facts Canton presented. Digital Asset, which created the Canton Network, raised $355 million earlier this year from Wall Street firms and a sovereign wealth fund.
- Blue Chips Surge Past 2.8% as VIX Drops Below 18 While Oil Sinks Nearly 8%
In a single session, the Dow jumped 2.87% to a record 53,275.11, the S&P 500 gained 1.74% and the Nasdaq Composite rose 1.89%, while the VIX fell to 17.08. WTI crude dropped 7.44% to $88.94 a barrel, while gold rose 3.38% to $4,073.40 an ounce and silver gained 5.16%. In earnings news, Amgen reported third-quarter total revenues up 8% to $10.4 billion, and Thomson Reuters' revenues rose 10% to $1,833 million. Agnico Eagle Mines posted quarterly net income of $1,353 million, or $2.67 per share, and returned $478 million to shareholders.
- Alphabet (GOOGL) Is Spending $15 Billion On Malaysia Data Centers
Alphabet (GOOGL) announced a US$15b investment in 2026 to expand Google data centers and AI infrastructure in Malaysia. The expansion includes new cloud facilities meant to serve regional AI demand from enterprise and public sector clients. In a separate development, an Alphabet shareholder sued senior executives, alleging Google's AI models were trained on copyrighted material without proper authorization. The article notes that if courts require tighter controls on training data or raise compliance costs, the AI services built on this infrastructure could face heavier constraints.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.